Income Taxes (Tables)

12 Months Ended

Jun. 28, 2014

For financial reporting purposes, our loss from continuing operations before income taxes includes the following:



	Year Ended
	June 28, 2014			June 29, 2013			June 30, 2012
	(Thousands)
Domestic	$	(22,197	)	$	685		$	(9,032	)
Foreign	(89,293		)	(120,954		)	(52,939		)
	$	(111,490	)	$	(120,269	)	$	(61,971	)

Components of Income Tax Provision

The components of our income tax provision are as follows:



	Year Ended
	June 28, 2014			June 29, 2013			June 30, 2012
	(Thousands)
Current:
Domestic	$	49		$	(156	)	$	(13	)
Foreign	2,873			1,564			6,565
Deferred:
Domestic	(13,054		)	(1,513		)	(4,852		)
Foreign	767			131			326
	$	(9,365	)	$	26		$	2,026

Reconciliations of Income Tax Provision at Statutory Rate to Income Tax Provision

Reconciliations of our income tax provision at the statutory rate to our income tax provision are as follows:



	Year Ended
	June 28, 2014			June 29, 2013			June 30, 2012
	(Thousands)
Tax benefit at U.S. federal statutory rate	$	(37,907	)	$	(40,890	)	$	(21,070	)
Tax benefit at state statutory rate	(999		)	(3,404		)	(7,214		)
Permanent adjustments	1,165			(29,746		)	3,677
Foreign rate differential	21,666			33,010			16,199
Change in valuation allowance	18,286			40,027			11,969
Non-deductible goodwill impairment loss	—			4,018			—
Intraperiod tax allocation	(13,054		)	(1,513		)	(4,852		)
Other	1,478			(1,476		)	3,317
Provision for income taxes	$	(9,365	)	$	26		$	2,026

Components of Deferred Tax Asset

Significant components of our deferred tax assets are as follows:



	June 28, 2014			June 29, 2013
	(Thousands)
Deferred tax assets:
Net operating loss carryforwards	$	254,483		$	314,792
Depreciation and capital losses	47,453			65,286
Capitalized research and development	15,999			18,162
Inventory valuation	14,074			30,114
Accruals and reserves	10,525			10,710
Tax credit carryforwards	3,579			3,469
Stock-based compensation	2,902			4,858
Other asset impairments	2,011			1,629
Foreign pension plan	—			2,585
Other	—			20
Deferred tax assets	351,026			451,625
Valuation allowance	(346,949		)	(444,114		)
Total deferred tax assets	4,077			7,511
Deferred tax liabilities:
Acquired intangibles	(4,077		)	(4,499		)
Withholding tax	(339		)	—
Total deferred tax liabilities	(4,416		)	(4,499		)
Net deferred tax assets	$	(339	)	$	3,012

Gross Unrecognized Tax Benefits, Net of Interest and Penalties

A reconciliation of the beginning balance and the ending balance of gross unrecognized tax benefits, net of interest and penalties, for fiscal year ended June 28, 2014, June 29, 2013 and June 30, 2012 is as follows:



	Year Ended
	June 28, 2014			June 29, 2013			June 30, 2012
				(Thousands)
Balance at beginning of period	$	8,016		$	7,248		$	6,853
Additions for tax positions related to the current year	522			1,851			380
Additions for tax positions related to prior years	606			130			125
Reductions for tax positions related to prior years	(741		)	(1,055		)	(110		)
Lapse of the applicable statute of limitations	(4,239		)	(158		)	—
Balance at end of period	$	4,164		$	8,016		$	7,248